The assets and liabilities are recorded and presented at their respective fair values. Jones is to be admitted as a new partner with a 20% capital interest and a 20% share of profits and losses in exchange for a cash contribution. No goodwill or bonus is to be recorded. How much cash should Jones contribute?

Following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 30,000 Liabilities $ 40,000 Land 180,000 A, capital 20,000 Building and equipment (net) 100,000 B,...

Recent Questions in Advanced Accounting

Fraker, Inc. owns 90 percent of Richards, Inc. and bought $200,000 of Richards'inventory in 2009. The transfer price was equal to 30 percent of the sales price. When preparing consolidated financial statements, what amount of these sales is...
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Identify the ethical issues involved with the “cookie jar” reserves and the economic consequences for parties affected by the chief accounting officer’s actions. (Hint: Reference the AICPA’s Code of Professional Conduct for CPAs).
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Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms to Safeco for $900,000. By the end of the year, Safeco had sold all but 500 of the locking mechanisms to outside parties. Padlock marks up the cost...
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The following accounts are the consolidated statement of financial position and parent company statement of financial position for Alpha Ltd as at 30 June 20X2. Ordinary shares Capital reserve Retained earnings Non-controlling interest Consolidated...
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OverviewIn the role of the accountant, decisions are not always made based on what the numbers show. There are often ethical considerations in addition to financialconsiderations. While the rules andguidelines of the Generally Accepted Accounting...
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ENCLOSED IN SEPARATE ATTACHMENT (excel sheet – see all tabs) YOU WILL FIND THE WORKSHEETS NEEDED TO ANSWER THE FOLLOWING THREE PARTS BELOW. Prepare a word-processed report that describes and discusses the following worksheet results: 1. The effects...
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Durrant Company has had great difficulty in controlling manufacturing overhead costs. At a recent convention, the president heard about a control device for overhead costs known as a flexible budget, and he has hired you to implement this budgeting...
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WEEK 4: COMPREHENSIVE ILLUSTRATION Consolidations: Complete one of the required elements of the Comprehensive Illustration beginning on page 186 and check your work against the provided solution. Explain the process to the class in your own words and...
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3 months ago